Archive for 'Ohio'

According to an article in the Columbus Dispatch, Ohio Attorney General Mike DeWine has filed suit against Collection and Recovery Bureau (CRB) for alleged violations of Ohio’s Consumer Sales Practices Act and the Fair Debt Collection Practices Act. The Attorney General alleges that the debt collection agency, which went out of business at the end of August, harassed consumers, damaged their credit reports, and threatened lawsuits – all over debts the consumers did not owe. The Attorney General is seeking a $175,000 fine plus restitution to affected consumers.

Arizona and Ohio municipalities have hopped on the debt collection bandwagon, joining other cities across the U.S. that are trying to make up their budget shortfalls by turning to debt collection agencies to recoup monies owed by citizens for power, gas, water, and other services. A report from Tucson’s KVOA notes that Mesa hauled in $1.4 million last year after using a debt collection agency, while a report from WFMJ notes that Warren, Ohio, has netted almost $340,000 after hiring Capital Recovery Systems.

Ohio Attorney General Richard Cordray recently announced a settlement with National Enterprise System (NES), in which the state will receive over $400, half of which will go to consumers who filed complaints with Cordray’s office, and the rest to Ohio’s Consumer Protection Enforcement Fund.

The lawsuit alleged that NES violated Ohio’s Consumer Sales Practices Act and the federal Fair Debt Collection Practices Act by calling victims’ family members and coworkers, calling early in the morning and late at night, using abusive language, trying to collect on debts people didn’t owe, and not verifying debts as required by law.

If you were an NES victim and filed a complaint with the Ohio Attorney General prior to the settlement, you will receive notification in the mail and $200 or more. This is a good reminder as to why, if you’re the victim of debt collector harassment, it’s important to file complaints with both your state Attorney General and with the Federal Trade Commission. If you live in Ohio and have been abused by another debt collection agency, you can file a complaint with the Attorney General by clicking here.

Ohio Attorney General Richard Cordray recently announced that there has been a noticeable uptick in debt collection complaints in that state. He noted, “In Ohio, we have received 2,067 complaints about debt collection in 2009 year-to-date, which is on pace to be almost double the number of complaints we received just three years ago,” Cordray said. “It’s a clear reflection of today’s economic stress. Ohioans’ tolerance of illegal debt collection tactics along with credit and home loan scams has reached its limit.”

A press release issued by his office goes on to say:

In 2008, the Ohio Attorney General’s Office received 2,446 debt collection complaints; 2,123 were received in 2007, and 1,699 were received in 2006. Earlier this year, Cordray filed a lawsuit against National Enterprise Systems, Inc., a collection agency based in Solon, Ohio, for routinely harassing consumers and using illegal practices to collect debts.

“A line must be drawn to keep debt collection from crossing over into harassment,” Cordray said. “Consumers have the right to be treated with respect and dignity. Overly aggressive tactics, such as making threats and repeated phone calls, are not allowed. Ohioans have enough financial worries without the added stress of harassing collection practices.”